Bitcoin Price Analysis: BTC Stalls At $103,000 As Markets Remain Cautious
Bitcoin (BTC) returned to bearish territory after a brief recovery on Wednesday as market sentiment remains cautious. The flagship cryptocurrency fell to an intraday low of $98,950 on Wednesday before rebounding and settling at $103,869.
BTC is down over 1% during the ongoing session, trading around $102,655.
Is Washington Creating A Bitcoin (BTC) Bubble?
Veteran economist and gold advocate Peter Schiff issued a stark warning about Bitcoin (BTC), stating that powerful forces have inflated its value. Schiff argued that the Bitcoin bull market is not organic, but has been propped up by political influence in Washington and Wall Street’s self-interest. Despite being proven wrong in the past, Schiff has doubled down on his belief that Bitcoin is a bubble and will eventually go to zero. The economist also does not believe BTC protects investors from dollar weakness and inflation, arguing that the same institutions that Bitcoin was meant to disrupt are the ones keeping it afloat.
Ray Dalio Issues Fed Warning
Ray Dalio has warned that the Federal Reserve’s decision to halt quantitative tightening measures could mark the beginning of a dangerous cycle of stimulating a bubble rather than responding to economic weakness. The billionaire investor and Bridgewater Associates founder argued that the Fed’s move from balance sheet reduction to expansion represents a classic late-stage debt cycle dynamic that could drive Bitcoin and gold prices higher before an inevitable collapse. The Fed recently announced it would end quantitative tightening on December 1, 2025, and transition to balance sheet maintenance at $6.5 trillion. The Fed also stated it would redirect agency security income into Treasury Bills instead of mortgage-backed securities.
Spot Bitcoin ETFs Register Substantial Outflows
Spot Bitcoin and Ethereum ETFs have registered combined outflows of $2.6 billion over the past week as markets registered a substantial decline. Spot Bitcoin ETFs saw over $1.9 billion in outflows while Ethereum ETFs saw $718.9 million in outflows, putting significant selling pressure on the two largest cryptocurrencies. BTC fell below $100,000 for the first time since May on Tuesday, while ETH slipped below $3,100 as selling pressure peaked on Tuesday and Wednesday.
Investors have avoided crypto and other risk assets since October amid concerns about the US-China trade war, the ongoing government shutdown, low liquidity, and uncertainty around a third rate cut before the end of the year. Despite the administration’s pro-crypto stance, BTC and other cryptocurrencies have registered substantial declines thanks to macroeconomic uncertainties. Spot Bitcoin ETFs registered their longest outflow streak in February, when investors pulled over $2.2 billion in a little over a week.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) returned to bearish territory during the ongoing session, with the price down over 2%, trading around $101,661. The flagship cryptocurrency recovered on Wednesday, rising over 2%. However, its recovery stalled around the $103,500 mark, with sellers retaking control.
Galaxy has revised its 2025 BTC price forecast from $180,000 to $120,000, citing several macroeconomic headwinds and price volatility due to passive investment flows into Bitcoin ETFs and financial institutions. According to Alex Thorn, Galaxy’s head of research, Bitcoin whales dumping large quantities of BTC onto the market in October, and capital rotation into other assets like gold, stablecoin, and AI, have dampened the positive sentiment around BTC. Thorn stated in a post on X,
“Bitcoin has entered a new phase, what we call the ‘maturity era,’ in which institutional absorption, passive flows, and lower volatility dominate. “If bitcoin can maintain the $100,000 level, we believe the almost three-year bull market will remain structurally intact, though the pace of future gains may be slower.”
According to Thorn, the flash crash on October 10, which triggered over $20 billion in liquidations in 24 hours, has “materially damaged the bull trend.” However, Thorn remains bullish about BTC’s long-term prospects.
BTC started the previous weekend on a bullish note, rising 0.84% on Friday and 0.56% on Saturday to settle at $111,666. Bullish sentiment intensified on Sunday as the flagship cryptocurrency rose nearly 3% to cross $114,000 and settle at $114,548. BTC reached an intraday high of $116,410 on Monday. However, it lost momentum after reaching this level and settled at $114,087, ultimately dropping 0.40%. Selling pressure and volatility persisted on Tuesday as the price fell 1.03% to $112,906. Bearish sentiment intensified on Wednesday as BTC fell 2.55% and settled at $110.032.
Source: TradingView
Volatility and selling pressure persisted on Thursday as BTC reached an intraday high of $111,629, fell to an intraday low of $106,279, and settled at $108,308. Despite the overwhelming selling pressure, BTC returned to positive territory on Friday, rising 1.15% and settling at $108,555. Price action remained positive over the weekend, with BTC increasing 0.45% on Saturday and 0.44% on Sunday to settle at $110,536. Bearish sentiment intensified on Monday as BTC fell nearly 4% and settled at $106,557. Selling pressure intensified on Tuesday as the flagship cryptocurrency slipped below $100,000, falling to a low of $98,892 before settling at $101,468. BTC recovered on Wednesday, rising over 2% and settling at $103,869 despite selling pressure. Selling pressure has intensified during the ongoing session, with the price down over 2% at $101,559.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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